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Car Import Duty Kenya 2026: How KRA Taxes Are Calculated
6 min read · Updated 15 October 2026 · More loans & borrowing
Importing a vehicle into Kenya involves several KRA taxes on top of the purchase price. The total can be a large share of the car's value, so it pays to understand each charge before you commit.
This guide walks through how the import duty calculator estimates customs value, import duty, excise duty, VAT, the Import Declaration Fee (IDF) and the Railway Development Levy (RDL).
Step 1: Determining the customs value
KRA values imported vehicles using the Current Retail Selling Price (CRSP) list for the make, model and year. The assessable customs value is then back-calculated from the CRSP by removing the 25% dealer margin embedded in the retail price and applying a depreciation allowance based on the vehicle's age, before stripping out duty, excise and VAT.
KRA depreciation applied by vehicle age (July 2025 schedule)
| Vehicle age | Depreciation |
|---|---|
| Up to 1 year | 5% |
| Over 1 – 2 years | 20% |
| Over 2 – 3 years | 30% |
| Over 3 – 4 years | 40% |
| Over 4 – 5 years | 50% |
| Over 5 – 6 years | 55% |
| Over 6 – 7 years | 60% |
| Over 7 – 8 years | 65% |
Step 2: The taxes applied
- Import duty: 35% of the customs value. Kenya applies a 35% stay-of-application rate on HS 87.02, 87.03 and 87.04 instead of the 25% EAC Common External Tariff base rate.
- Excise duty: 20% for up to 1,500cc, 25% for petrol 1,501–3,000cc or diesel 1,501–2,500cc, 35% for petrol above 3,000cc or diesel above 2,500cc, and 10% for fully electric vehicles, applied to customs value plus import duty.
- VAT: 16% on customs value plus import duty plus excise duty.
- IDF: 2.5% of the customs value.
- RDL: 2% of the customs value.
Worked example: a 5-year-old 1,500cc vehicle
Assume a CRSP of KSh 2,000,000 for a five-year-old vehicle with an engine up to 1,500cc.
| Item | Calculation | Amount |
|---|---|---|
| Customs value | 2,000,000 / 1.25, less 55% depreciation, back-calculated | KSh 383,142 |
| Import duty | 35% of 383,142 | KSh 134,100 |
| Excise duty | 20% of (383,142 + 134,100) | KSh 103,448 |
| VAT | 16% of (383,142 + 134,100 + 103,448) | KSh 99,310 |
| IDF | 2.5% of 383,142 | KSh 9,579 |
| RDL | 2% of 383,142 | KSh 7,663 |
| Total KRA taxes | Sum of the above | KSh 354,100 |
| Estimated landed cost | 383,142 + 354,100 | KSh 737,241 |
Good to know: Port clearance and shipping charges are additional. Use the calculator with your vehicle's CRSP for a tailored estimate.
Tips to reduce your import tax bill
- Smaller engine sizes attract lower excise duty, so a vehicle up to 1,500cc is usually cheaper to import.
- Fully electric vehicles attract a lower 10% excise rate and a reduced 25% import duty.
- Vehicles over eight years old are not allowed for import and may face an import age restriction.
- Confirm the current CRSP with KRA before you finalise a purchase, since it determines the whole calculation.
Quick Answers
Car Import Duty Kenya 2026: Full Breakdown FAQs
How is car import duty calculated in Kenya?
KRA taxes are applied to a depreciated CRSP-based customs value. Import duty, excise duty, VAT, the Import Declaration Fee and the Railway Development Levy are stacked in sequence.
Is import duty on cars 25% or 35%?
The EAC Common External Tariff base rate for motor vehicles is 25%, but Kenya applies a stay-of-application rate of 35% on HS 87.02, 87.03 and 87.04, so most imported cars are charged 35% in 2026.
Are electric cars cheaper to import in Kenya?
Fully electric vehicles attract a reduced 10% excise duty, which lowers the overall tax compared with equivalent petrol or diesel vehicles.